Can you renegotiate the price if market value drops?

[LDFerguson]

If the market value of an Affordable Housing scheme property drops between when first agreed and closing, will the County Council drop the discounted price proportionately?

Example - someone agrees to buy a property for €186,000, based on market value €280,000. Mortgage valuation comes in at €252,000, i.e. 10% lower than original figures. Will the County Council also knock 10% off the discounted price?

Thanks.

 

[jenben1982]

I just put a deposit down on one on Monday, and Ive a meeting with the Council at lunchtime today to discuss the clawback. They have the estimated value @ 307.5k. My Guess is - when the val comes in it will be worth 290k so I will DEFINTELY be arguing the clawback.

I will let you know after lunch what they say regarding it

 

[Cheeus]

Example - someone agrees to buy a property for €186,000, based on market value €280,000. Mortgage valuation comes in at €252,000, i.e. 10% lower than original figures. Will the County Council also knock 10% off the discounted price?

.

They will generally reduce clawback only not purchase price.

 

[Blossy]

hi ai ma really glad someone asked this question i also would be extremely interested. In the above example approx 33% discout was given to the purchaser. therefore if the market value is dropped would the 33% discount be applied to the new value of the property. when the person sells the property in x amount of years, the council will still recive thier agreed clawback??? they recieve thier clawback at the value of the house at that time. would it not be a reduction in todays house price,that is what the percentage to be taken from???

 

[jenben1982]

Spoke to SDCC and they advised they have to wait til the valuation comes through to see what they value it at. If it comes in less they will review it. Its done on a case-by-case basis.